GLOBAL MARKETS-Asian shares mixed, U.S. dollar near 2-1/2 year lows

By Swati Pandey

SYDNEY, Dec 3 (Reuters)Asian shares were mixed on Thursday after a choppy day of Wall Street trade, thanks in part to a disappointing U.S. jobs report, while the greenback languished near 2-1/2 year lows on growing optimism of a coronavirus vaccine.

Britain became the first Western country to approve a COVID-19 vaccine, with 800,000 doses of the Pfizer PFE.N and BioNTech 22UAy.DE vaccine available for those at high risk starting next week.

The U.S. Food and Drug Administration is holding its advisory committee meeting next week, while New York Governor Andrew Cuomo has said the state’s first delivery, enough for 170,000 residents, is expected on Dec. 15.

Hopes that the pandemic, which has so far killed nearly 1.5 million people globally, will finally be brought under control sparked a risk-on rally in currency markets with the Australian and New Zealand dollars advancing against their U.S. counterpart. AUD=D3, NZD=D3

The dollar index slipped to a fresh 2-1/2 year low of 90.948 =USD on Thursday and was last at 90.976. FRX/

“Currency investors are taking on more risk following the latest vaccine breakthroughs, options show,” Morgan Stanley said in a note.

Hopes of a fiscal support package in the United States also boosted investor optimism.

But share traders were less enthused.

E-Mini futures for S&P500 ESc1 were a shade weaker as were Dow futures 1YMc1. Futures for Eurostoxx 50 STXEc1 were down 0.1%, those for Germany’s Dax FDXc1 eased 0.2% and London’s FTSE futures FFIc2 fell 0.4%.

In Asia, Japan’s Nikkei .N225 was unchanged while South Korea’s KOSPI .KS11 and Australia’s benchmark index .AXJO were about 0.4% higher each. Chinese shares opened a tad lower, with the blue-chip CSI300 index .CSI300 off 0.2%. New Zealand shares .NZ50 were weaker too.

That left MSCI’s broadest index of Asia-Pacific shares outside of Japan .MIAPJ0000PUS up 0.4% following two straight days of gains.

“Markets are quite likely to muddle through from here,” said Michael Frazis, portfolio manager at Frazis Capital Partners in Sydney.

“The vaccine is increasingly priced in. A couple of months ago, no one knew how deep coronavirus would be, or what the outcome of the election was. Now both sources of uncertainty have been removed.”

Worries that the U.S. economy may be decelerating weighed on shares after U.S. private payrolls showed fewer jobs than expected were added in November as growing new COVID-19 infections led to additional business restrictions.

Overnight, Wall Street swung between red and green territories but eventually ended a tad firmer. The Dow Jones .DJI and the S&P 500 .SPX gained 0.2% each while the tech-heavy Nasdaq .IXIC was barely moved.

In currencies, the risk-sensitive Aussie hit a more than two-year high of $0.7420 overnight and was last at $0.7410. Its kiwi cousin NZD=D3 was last at $0.7063, hovering near the highest since May 2018.

The euro fetched $1.2118 EUR=, having reached its loftiest level since late April 2018 in the previous day’s trade.

In commodities, oil prices slipped on Thursday as producers including Saudi Arabia and Russia locked horns over the need to extend record production cuts set in place in the first wave of the COVID-19 pandemic. O/R

Brent crude LCOc1 was down 9 cents at $48.16 a barrel while U.S. light crude CLc1 eased 14 cents to $45.14.

Gold was slightly firmer at $1,832.6 an ounce XAU=.

Global assets

Global currencies vs. dollar

Emerging markets

MSCI All Country Wolrd Index Market Cap

(Reporting by Swati Pandey in Sydney and Jessica DiNapoli in New York; Editing by Stephen Coates)

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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